Page 163 - ΝΑΥΤΙΚΑ ΧΡΟΝΙΚΑ - ΣΕΠΤΕΜΒΡΙΟΣ 2022

US coal-fired fleet retiring since 2008, and natural gas may help these power However, despite the optimistic out-
leaving about 205,000 megawatts (MW) plants extend their operations, com- look on China’s iron ore imports in the
in operation as of June 2022. petitive pressures in the market remain coming months, the country’s previously
Some coal-fired power plant owners because the cost to be fuel flexible released figures for iron ore imports for
have taken steps to make their plants remains substantial, says the EIA. 2022 sow a downward trend compared
more competitive rather than perma- to 2021. In fact, this picture is also
nently closing them, including making IRON ORE-STEEL consistent with China’s steel produc-
their plants fuel flexible. Adding this tion this year. In July, output was 6.4%
flexibility has allowed the plants to Conflicting views on the future of the lower than a year ago.
respond better to market conditions iron ore market
by burning the most economical fuel. The long-term outlook of the iron ore The latest data on world steel pro-
The EIA identified 13 US thermal plants market is more optimistic than the duction
that converted to fuel flexibility in the short-term view. Market analysts note The World Steel Association recently
past five years. Eight plants are located that this may cause instability in iron released data on world steel production
in the Southeastern United States, ore prices. in July 2022. World crude steel produc-
mostly in Florida and the Carolinas. Ari- The short and long-term outlook of tion for the 64 countries reporting to
zona, Louisiana, Pennsylvania, Missouri, the iron ore market largely depends on the World Steel Association was 149.3
and Oklahoma have one plan each t. China, the largest steel producer and million tonnes (Mt) in July 2022, a 6.5%
The 13 plants have a total generating importer of 70% of the world’s seaborne decrease compared to July 2021.
capacity of 16,522 MW. iron ore. However, the fact that there The output of the top 10 steel-produc-
The 13 fuel-flexible plants have col- is uncertainty regarding the prospects ing countries in 2022
lectively diversified their fuel mix, con- of the Chinese economy makes it dif- – China: 81.4 Mt by July 2022,
suming increasing amounts of natural ficult to assess the future of the iron down 6.4% on July 2021
gas. The share of natural gas use versus ore market. – India: 10.1 Mt, up 3.2%
coal use at these plants increased from BHP Group CEO Mike Henry weighed – Japan: 7.3 Mt, down 8.5%.
10% natural gas in 2018 to 30% nat- in on the issue, claiming that China will – The United States: 7.0 Mt,
ural gas late in 2019, before reaching be a stabilising factor in commodity down 6.4%
38% natural gas in 2020, according to demand next year. According to Reuters, – Russia:5.5 Mt, down 13.2%.
data from our Power Plant Operations for this optimistic scenario to become a – South Korea: 6.1 Mt, down 0.6%
Report. The rise in the natural gas share reality, there would have to be very few – Germany: 3.0 Mt, down 2.0%
peaked when natural gas prices sank to lockdowns in China, and any slowdown – Turkey: 2.7 Mt, down 20.7%.
low levels in 2020. in global economic activity would have – Brazil: 2.8 Mt, down 8.7%
Although the flexibility to use both coal to be very short. – Iran: 2.0 Mt, up 34.1%

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